The  Yerkes  Bill 

(D  ®  ® 

ANSWER 

of 

The  Chicago  Committee 

OF  ONE  HUNDRED. 


*'Qive  Us  Something.' 


K.  H.  Winston,  spea/finor  for   Street  Railroad  Managers   'tefore   House 
Judiciary-  Committee,  May  20,  1897. 


*  *  *  "  The  next  step  should  be  to  bring  the  extension  of  the  franchises  before 
the  proper  civic  authorities,  where,  if  they  appear  with  clean  hands,  offering  the 
municipality  adequate  compensation,  the  companies  will  receive  just  treatment." 

"  We  are  *  *  *  eager  to  meet  the  street  railway  companies  half  w  ay,  certain 
to  be  honest  with  them,  willing  to  give  them  all  they  are  justly  entitled  to." 

"Not  a  street  railway  official  has  come  to  me  and  asked  that  I  should  call  into 
counsel  the  rulers  of  the  people  and  formulate  a  plan  by  which  the  companies  and 
taxpayers  might  get  together.— "Aifiyoi-  Harrison,  rejjresentina:  Cliicagro, 


CHICAGO,  1897 


To  the  Honorable,  the  Members  of  the  General  Assembly  of  the 
State  of  Illinois. 

Gentlemen  :  When  the  Humphrey  Bills  met  deserved  defeat  in 
in  the  House  of  llepresentatives  on  May  12,  1897,  we  may  safely 
assume  that  the  objectionable  features  embodied  in  those  measures 
were  ap[)arent  to  the  members  who  voted  against  them.  Public 
sentiment  sustained  the  action  of  the  House  which,  indeed,  only  re- 
flected the  views  and  wishes  of  the  people.  Time  need  not  be  spent, 
therefore,  in  mere  repetition  of  the  arguments  already  advanced. 
It  is  true  that  Mr.  Yerkes  did  not  hesitate  to  severely  criticise  the 
action  of  the  House  and  the  meml)ers  who  voted  to  upset  his  plans.  It 
is  true  that  he  did  not  hesitate  to  congratulate  the  members  who  voted 
in  his  favor.  It  is  true  that  ho  says  that  lie  did  not  intend  to  do 
another  thing  or  to  lift  his  hand  after  the  defeat  of  the  Humphrey 
liills.  "  But  I  was  prevailed  upon,"  he  says,  ^'•hy  lyeople  connected 
w/tJi  our  vail  road  conqmnies^  "'^  "  *  to  come  down  here  and 
make  another  eft'ort.  I  have  also  been  talked  to  with  regard  to 
moditietl  bills,  and  while  I  do  not  believe  in  modifying  anything 
in  these  Humphrey  Bills  so-called,  yet  I  am  willing  to  accept 
some  modifications.  At  the  same  time  I  believe  it  is  a  mistake 
to  modify  them  in  any  manner. " 

We  do  not  for  one  moment  believe  that  this  statement  of  his 
opinion  by  Air.  Yerkes  Avill  be  decisive  Avith  the  members  of  the 
House  as  to  what  ought  to  be  done.  On  the  contrary,  we  believe 
that  the  members  of  the  Legislature  will  rather  side  with  the  people 
and  consider  their  rights  and  interests. 

A  just  conclusion  must  therefore  be  based  upon  the  facts,  and  in 
order  to  ascertain  what  the  Yerkes  Bill  contains  we  invite  your  at- 
tention to  the  following  comparison. 

The  humbug  pretense  formerly  insisted  upon  that  the  street  rail- 
road bills  did  not  come  from  the  street  railroads  and  their  managers 
has  now  been  smoked  out  and  definitely  abandoned.  Mr.  Yerkes 
himself  produces  the  present  bill,  which  betrays  a  most  striking  re- 
semblance so  the  discredited  Humphrey  Bills. 


2 


Yerkes  Bill. 

Section  1.  Existing  street 
railroad  companies  shall  have  all 
the  additional  powers  conferred 
by  this  act. 

Sec.  2.  Such  corporations 
may  exercise  power  of  eminent 
domain  to  take  any  property  re- 
quired for  roads,  depots,  power 
houses,  etc.,  subject  to  restric- 
tions in  section  9  below,  which 
prohibits  taking  street  railroad 
property. 

Sec.  3.  Constitutional  require- 
ment of  consent  by  corporate  au- 
thorities re-enacted  for  new 
grants  ;  also  requires  strict  com- 
pliance w^ith  all  provisions  of  law, 
or  to  be  void. 

Sec.  4.  New  licenses  may  l)e 
granted  for  not  to  exceed  fifty 
years,  and  rate  of  f?re  fixed  at  not 
to  exceed  five  cents  per  ride. 

Sec.  5.  Ordinances  of  exist- 
ing corporations  extended  thirty- 
five  years  from  first  Tuesday  of 
September,  1897,  they  to  charge 
5  cents  for  twenty  years  for  dis- 
tances specified  in  ordinances 
Jierehy  so  extended  ;  for  remaining 
fifteen  years,  fare  to  be  fixed  by 
corporate  authorities. 

PaA^ments  to  city  in  counties  of 
100,000  or  less,  one  per  cent.  ; 
100,000     to    200,000,    two    per 


Humphrey  Bills. 

No.    258,    Section    1.     Sub- 
stantially identical. 


Id.  Ses.  2  and  3.  Substan- 
tially identical  with  provision  in- 
serted permitting  carriage  of 
packages. 


Id.    Sec.    4.       Substantially 
identical. 


Id.    Sec.     6.        Substantially 
identical. 


Id.  Sec.  7.  Suljstantially 
identical,  except  provision  in- 
serted that  all  powers  and  privi- 
leges granted  to  street  railroad 
corporations  shall  be  held  con- 
tracts ;  also  except  extension  is 
for  fifty  years  with  5  cent  fare, 
and  compensation  is  three  per 
cent,  for  fifteen  years,  five  per 
cent,  for  twenty  3'^ears  and  seven 
per  cent,  for  fifteen  years  in 
counties  of  third  class. 


cent.  ;  200,000  and  over,  three 
})er  cent,  for  fifteen  years,  five 
per  cent  for  ten  years  and  seven 
per  cent,  for  ten  years  on  gross 
receipts  for  previous  year.  Where 
road  extends  into  two  or  more 
municipalities,  payments  to  be 
dix'ided pro  rata  as  per  mileage  in 
each.  Existing  compensation  to 
corporate  authorities  shall  con- 
tinue to  be  paid,  hut  shall  he 
credited  on  said percentacjes. 

Every  existing  company  desir- 
ing to  avail  itself  of  such  exten- 
sion shall  on  or  before  the  first 
Tuesday  of  August,  1897,  file 
notice  with  Secretary  of  State  and 
corporate  authorities,  and  make 
payment  of  percentage  to  officer 
designated  at  time  named  in  Act. 

Terms  of  act  extended  to  roads 
not  constructed. 

Sec.  6.  Any  motive  power 
except  steam  locomotives  per- 
mitted. 

Sec.  7.  Tracks  to  be  laid  in 
center  of  street,  etc. 

Sec.  8.  Applications  for  new 
lines  to  be  made  to  local  officials 
named,  whose  report  on  necessity 
etc.,  of  such  lines  is  made  condi- 
tion precedent  to  grant.  Ordi- 
nance to  be  sold  at  ^auction,  etc. 
Ordinances  to  e.dend  existing 
lines  not  to  he  certified  as  to  nec- 


Id.     Sec. 
identical. 


Substantial!  V 


Substantially 


Id.    Sec.     : 
identical. 

No.  148,  Sec.  7.  Seventh 
paragraph  contains  provisions 
for  application,  report,  auction, 
etc.,  substantially  identical,  ex- 
cept that  such  application  was  to 
be  made  to  the  proposed  state 
commission. 


No.  258,    Sec. 
tially  identical. 


Id.     Sec. 
identical. 


11. 


10.     Substan- 


Sabstantially 


essity  nor  sold  at  auction;  com- 
pensation to  be  fixed  by  ordi- 
nance. 

Sec.  9.  No  corporation  shall 
enter  upon,  appropriate  or  use 
whole  or  any  part  of  property  or 
tracks  of  another  street  railroad 
corporation,  except  to  cross  the 
same,  without  its  consent. 

Sec.  10.  Such  corporations 
may  purchase,  or  contract  for 
use  of,  tracks  or  property  of 
each  other.  They  may  consoli- 
date stock,  property  and  fran- 
chises, unless  parallel  or  com- 
peting. Previous  contracts  of 
this  character  legalized. 

Sec.  11.     Repeals  Horse  and         Id.     Sec. 
Dummy  Railroad  Act,  etc.  identical. 

It  will  thus  be  seen  that  while  the  State  Commission  has  been 
eliminated  the  present  bill  contains  an  equally  vicious  interference 
with  local  self-government,  for  it  attempts  to  extend  ordinances 
granted  by  the  City  of  Chicago  and  other  municipalities  by  an  act 
of  the  Legislature.  To  obviate  the  constitutional  objection,  it  is 
sought  indirectly  to  obtain  the  consent  of  the  corporate  authorities 
by  their  receipt  of  the  proposed  compensation.  In  event  of  their 
refusal  to  accept  the  bribe  and  barter  away  the  rights  of  the  city, 
then  it  will  doubtless  be  claimed  by  the  street  railroads  that  by  their 
written  acceptance  and  offer  to  pay,  the  extensions  have  already 
become  fixed  so  that  they  cannot  l)e  interfered  with. 

WHO  FAVOR  THE  BILL? 

Most  of  the  men  who  went  to  Springfield  with  Mr.  Yerkes  are 
known  to  have  personal  interests  which  he  can  influence  ;  or  to  be 
directly  connected  with  the  interests  which  he  seeks  to    promote  at 


12.       Substantially 


the  expense  of  Cliictigo.  Not  one  of  them  eonies  forward  to  help 
secure  for  the  })eoi)Ie  fair  and  honest  treatment  at  the  hands  of  the 
street  railroads.  Thev  do  not  re[)resent  the  ojjinion  of  the  public  in 
Chicago  noi'  of  Illinois.  riicy  assume  to  say  that  there  has  been  a 
great  change  of  opinion  on  the  street  railioad  bills.  \\'here  is  the 
|)roof  of  their  assertions  ?  No  such  proof  exists  because  no  such 
facts  exist.  The  only  corroboration  offered  is  by  Mr.  Yerkes,  who 
slates  that  "gentlemen  who  voted  against  the  striking  out  of  the 
enacting  clause  of  these  (Humphrey )  bills  -  ^  ^  have  been  taken 
by  the  hand  and  congratulated  "  by  certain  diai)hanous  and  elusive 
persons  whose  identity  is  not  revealed.  These  congratulatory 
"  men  in  buckram  "  will  hardly  satisfy  the  Legislature  of  the 
soundness  of  these  claims. 

WHAT  IS  FAIR  TREATMENT? 

Fair  treatment,  they  insist,  requires  that  a  measure  of  protection 
should  now  be  given  to  the  capital  already  invested,  which  was  se- 
cured in  the  belief  that  extensions  of  time  on  substantially  the 
same  basis  could  be  had  when  the  present  terms  granted  by  ordi- 
nances expire. 

Mv.  Yerkes  sajs  :  "The  expectation  has  always  l)een  to  have 
those  ordinances  extended,  to  have  the  time  extended.  If  it  had  not 
been  for  that,  capital  would  not  have  gone  into  them  to  the  extent 
that  it  has. ''  He  further  says  :  "  When  a  man  goes  into  an  invest- 
ment, particularly  if  it  is  some  new  venture,  *  "''  '■"  he  will  not 
only  calculate  to  get  his  money  back,  but  he  will  calculate  to  double 
his  money.'' 

We  all  know  that  the  capital  necessar}' to  change  the  motive  power 
employed  l)y  the  great  Chicago  companies  was  not  only  forthcoming 
in  abundant  measure  so  that  those  improvements  liave  been  com- 
pleted and  paid  for,  but  good  returns  have  been  secured  upon  the 
investment.  Capital  is  not  now  needed  for  new  enterprises.  No 
s[)eculative  feature  is  now  involved.  Capital  to  buy  the  street  rail- 
roads of  Chicago  can  be  had  in  any  amount  required  to  cover  their 
actual  value  at  from  three  per  cent,  to  five  per  cent,  per  annum. 
The  investment  on  that   basis    would    be  as   certain   as  government 


bonds  or  first  class  mortgage  securities.  Why,  then,  should  the 
public  be  expected  to  donate  enough  to  enable  the  holders  of  the 
railway  securities  to  "  double  their  stock  and  halve  their  dividends," 
as  Mr.  Yerkes  says.  Those  who  expect  to  double  their  money  should 
look  elsewhere  for  investment. 

The  only  fair  claim  is  the  purely  equitable  one  of  repayment  to 
the  owners  of  the  actual  value  of  their  properties,  and- there  should 
be  no  doubt  about  this.  No  one  disputes  it,  and  no  one  attacks  it. 
The  City  of  Chicago  has  no  desire  to  deal  unjustly  with  these  com- 
panies, but  more  than  this  would  be  a  donation  of  public  property 
for  private  gain.  Compare  the  circumstances  with  those  of  a  ground 
lease  with  a  provision  for  payment  of  the  actual  value  of  the  im- 
provements belonging  to  the  tenant  at  the  end  of  the  term.  Can 
they  now  justly  complain  if  the  full  value  of  their  investment  is 
repaid  ? 

THEY  OUGHT  TO  APPLY  TO   THE   CITY   AUTHORITIES- 

No  disposition  to  take  advantage  of  the  railroads  has  been  shown 
anywhere.  The  utterances  of  the  Mayor  of  Chicago  have  been 
eminently  wise  and  fair.  In  all  probability  they  will  become  the 
new  lessees  themselves.  Why  do  they  not  make  application  to  the 
city  council  which  cannot  compel  them  to  anything  at  this  time? 
Should  all  fair  proposals  be  rejected  it  would  then  be  time  enough  to 
apply   to  the  Legislature. 

The  onl}^  possible  reasons  for  haste  cannot  arise  out  of  any  con- 
siderations affecting  the  prosperity  of  the  street  railroad  business. 
That,  as  we  have  seen,  is  in  a  highly  prosperous  condition.  Large 
dividends  are  regularly  earned  and  paid  on  stock  much  in  excess  of 
the  value  of  their  property  ;  and  their  net  earnings,  as  well  as  their 
receipts,  are  rapidly  increasing.  Why,  then,  does  this  extremely 
urgent  demand  arise  now?  We  must  seek  for  the  reasons  actuating 
those  who  urg#  hasty  action  elsewhere. 

Possibly  private  and  personal  interests  may  be  involved  to  a 
greater  degree  than  has  been  disclosed.  Possibly  these  promoters 
may  have  deemed  it  less  burdensome  to  deal  by  the  wholesale, 
through  the  medium  of  general  laws,  than  with  the  individual  cases 


of  each  railroad  with  each  different  municipalitj^  Possibly  the 
movement  is  speculative  in  character  with  a  view  to  test  each  of  sev- 
eral Legislatures  concurrently  with  even  a  greater  number  of  city 
councils  and  thus  to  obtain  the  most  possible  from  the  public. 

NO    HASTY    LEGISLATION    REQUIRED. 

Mr.  Yerkes  assumes,  and  to  some  extent  seems  to  have  created 
the  impression,  that  there  is  just  now  a  serious  crisis  in  the  Chicago 
street  railway  situation.  Si)eaking  before  the  Judiciary  Committee 
of  the  House  on  May  19th,  he  admits  that  "  twenty -year  ordinances 
for  the  old  horse  car  lines  might  look  like  a  proper  thing,"  but 
argues  that  the  investments  now  requii-ed  are  so  heavy  that  "char- 
ters ought  to  be  made  permanent,"  and  that  the  proposetl  legislation 
is  immediately  necessary  to  induce  capital  to  seek  investment,  not 
only  in  Chicago  but  in  the  State  of  Illinois,  and  thus  relieve  the 
present  financial  depression. 

We  have  heard  various  explanations  of  the  continued  tinancial 
depression,  but  believe  that  it  has  not  before  been  attributed  to  the 
inability  of  the  Chicago  council  to  grant  franchises  to  Mr.  Yerkes 
extending  beyond  twenty  years.  In  fact,  this  explanation  is  new 
to  Mr.  Yerkes  himself.  As  late  as  January  last,  at  the  annual 
meeting  of  the  stockholders  of  the  West  Division  Street  Railroad 
Company,  he  said  :  "  When  1  talk  to  my  friends  in  regard  to  their 
business  for  last  year,  they  generally  tell  me  that  they  made  practi- 
cally nothing.  When  1  compare  what  is  being  done  in  other  lines 
of  business,  with  the  results  we  have  obtained,  I  feel  pretty  well 
satisfied.  *  *  '■*  As  we  are  now  going  it  looks  as  though  we 
would  make  more  monev  than  we  did  last  year.""  Mr.  Yerkes  on 
the  same  day  further  said  :  "  I  think  the  present  dividend  i  North 
Chicago  12  per  cent.  ;  net  earning,  15.07  per  cent.)  can  l)e  main- 
tained for  a  good  while,  if  not  increased.  1  do  not  know  but  it 
would  be  a  good  plan  to  double  the  capital  stock  and  halve  the  divi- 
dends."  It  thus  appears  that,  in  a  time  of  general  financial  de- 
pression, these  properties  are  prosperous  to  a  high  degree.  Yet 
Mr.  Yerkes  and  the  interested  '■^people  connected  icith  our  railroad 
companies,'^''  who  it  seems  induced  him  again  to  aj^peal  to  the  Legis- 


lature,  and  whose  inordinate  greed  be  so  fitly  represents,  have  the 
colossal  impudence  to  call  upon  those  who  represent  Illinois,  to 
'<  give  us  something,  ^-  *  -^  tJiat  thereimtation  of  our  city  may 
he  rehabilitated;  and  th.at prosperity  may  again  dawn  upon  us.'''' 

THE     REAL    SITUATION. 

The  claim  that  immediate  legislation  is  needed  to  induce  the  in- 
vestment of  fresh  capital  in  these  roads  is  not  borne  out  by  the 
facts.  Speaking  before  the  Judiciary  Committee  of  the  House,  of 
the  present  situation,  Mr.  Yerkes  says  :  "Instead  of  having  this 
light  track,  instead  of  horses  and  horse  cars,  we  put  in  a  cable  road 
which  cost  1130,000  for  a  double  track  mile  ;  we  put  in  an  electric 
line  which  cost  $50,000  per  double  track  mile  ;  we  put  in  machinery 
at  one  station  alone  which  cost  us  $600,000.  *  *  *  We  have 
spent  in  the  last  twelve  years  $19,000,000.  What  for?  To  im- 
prove our  roads,  to  extend  them,  to  change  the  motive  power." 

All  this  ivas  done  under  existing  legislation  and  upon  twenty  year 
ordinances.  The  investment  is  made  and  the  improvements  paid 
for.  Securities  representing  the  new  capital  invested,  and  others 
which  are  the  sole  surviving  evidences  of  construction  and  equip- 
ment long  since  consigned  to  the  scrap  heap  and  still  others  which 
never  evidenced  anything  but  dividends  expected,  are  outstanding  in 
the  hands  of  holders  who  regularly  receive  on  them  liberal  interest 
and  extraordinary  dividends. 

The  holders  of  the  securities  of  these  roads  no  doubt  invested 
with  the  expectation  that  they  will  receive  renewals  of  their  ordi- 
nances, as  Mr.  Yerkes  says.  But  has  there  been  any  serious  threat 
to  refuse  such  renewals?  Have  the  companies  even  made  any  ap- 
plication to  the  proper  and  legal  authorities  to  secure  such  renewals? 
It  will  be  time  enough  to  talk  about  anarchy  and  confiscation  when 
the  City  of  Chicago  has  refused  these  corporations  fair  treatment 
in  the  matter  of  the  renewal  of  their  ordinances.  Until  he  has 
asked  for  terms  and  been  refused  just  treatment  by  the  City  of  Chi- 
cago, at  whose  hands  he  has  received  such  princely  gifts,  it  ill  be- 
comes Mr.  Yerkes  to  assail  her  fair  name  by  talk  of  anarchy  and 
confiscation. 


THE   FACTS  MUST  BE   DISCLOSED. 

The  only  legitiiiiHte  plan  u[)on  which  compensation  can  justly  be 
paid  by  the  companies  to  the  public  is  one  of  profit-sharing.  No 
matter  what  the  payment  jjurports  to  be  based  upon,  unless  there  is 
a  net  profit  under  skillful  and  honest  management  no  payujent  at 
all  should  be  made  to  the  public  which  receives  its  benefit  from  the 
use  of  an  improved  highway  for  the  transportation  of  passengers. 
This  shows  how  impossible  it  is  to  make  any  fair  adjustment  by 
general  law  for  the  facts  and  circumstances  surrounding  each  indi- 
vidual company  and  its  business  must  be  known  before  any  fair  ar- 
rangement can  be  made  with  it. 

We  are  told  that  only  a  few  of  the  street  railroads  earn  any  divi- 
dends at  all.  This  is  undoubtedly  true.  Does  this  furnish  any  ar- 
gument against  the  payment  of  reasonable  compensation  by  those 
roads  which  do  earn  enormous  profits?  Their  position  is  as  ridic- 
ulous and  absurd,  when  they  attempt  to  evade  the  payment  of  fair 
compensation,  as  would  be  that  of  a  giant  who  objected  to  the  bur- 
den imposed  upon  him  because  it  was  too  heavy  for  the  strength  of 
a  boy.  What  difference  does  it  make  to  such  companies  whether 
other  companies  earn  profits  or  not?  No  general  law,  such  as  is 
proposed,  can  be  just  and  fair  to  the  different  street  railroad  com- 
panies and  the  public. 

Jud^e,  then,  how  important  it  is  that  a  full  investigation  of  the 
street  railroad  situation  should  precede  action  of  any  kind.  This 
takes  time  and  sufficient  time  for  it  should  be  given. 

The  complete  reconstruction  and  rapid  extension  of  the  Chicago 
street  railroads  within  the  last  dozen  years,  under  existing  hna  and 
nj)on  ticenty  year  ordinances,  show  that  capital  is  available  and  even 
anxious  for  such  investments.  There  is  no  emergency  requiring  the 
General  Assembly  to  enact  any  hasty  legislation  whatever  at  the 
close  of  its  session  in  behalf  and  on  the  sole  invitation  of  these  cor- 
porations. Renewals  of  their  ordinances  can  be  had  for  the  asking 
on  terms  far  more  liberal  to  them  than  the  circumstances  demand. 
Though  these  corporations  are  commonly  believed  to  have  again  and 
again  corrupted  her  officials  and  filched  her  imperial  resources,  Chi- 


10 

cago  is  not  seeking  revenge  but  is  still  willing  to  treat  them  not  only 
fairly  but  generously.  There  is  ample  time  before  their  present 
ordinances  expire  to  consider  whether  any  legislation  is  desirable  to 
enable  the  local  authorities  to  grant  longer  renewals  than  for  twenty 
years.  Such  legislation  should  be  enacted,  if  at  all,  only  after  Chi- 
cago has  been  fully  heard  and  every  precaution  taken  to  protect  her 
rights.  There  is  a  conclusive  presumption  against  any  measure 
which  is  sought  to  be  rushed  through  at  this  time  upon  the  initiative 
of  these  corporations  alone. 

THE    COMPENSATION    IS    INADEQUATE. 

The  rate  of  compensation  provided  to  l)e  paid  to  the  corporate 
authorities  is  ridiculously  inadequate.  It  is  no  more  nor  less  than 
a  free  gift  of  millions  upon  millions  of  dollars  to  the  street  car 
companies,  most  of  which  would  be  absorbed  by  their  managers 
and  manipulators.  It  is  not  the  public  nor  even  the  investing  pub- 
lic which  would  benefit  by  this  munificent  gift,  but  the  few  insiders 
who  manage  the  deal. 

STOCKJOBBING. 

The  consolidation  feature  in  Section  10  deserves  a  word  of  con- 
demnation. We  live  in  an  era  of  stock  speculation  by  the  man- 
agers and  manipulators  of  corporate  interests  quite  unexampled  in 
the  world's  history!  This  abuse  has  grown  to  be  a  great  public  evil. 
Not  alone  those  who  seek  to  gamble  on  the  market  in  stocks  but 
every  interest  which  touches  investment  in  corporate  securities  be- 
comes the  prey  of  these  bold  and  unscrupulous  operators. 

The  Chicago  street  railway  securities,  and  more  particularly  those 
of  the  West  Division  Railroad,  furnish  as  complete  and  startling  an 
illustration  of  this  hurtful  manipulation  and  speculation  as  can  be 
found  anywhere.  Conditions  became  such,  after  the  recent  issues 
of  securities  by  that  company  had  been  sprung  on  the  market,  that 
all  investors  sought  to  close  out  their  holdings  and  even  the  very 
stock  broker  dared  not  hold  them  over  night.  Who  was  and  is  re- 
sponsible for  this  state  of  aflairs?  The  very  same  persons  who  are 
back  of  this  attempt  to  spread  the  shield  of  the  law  over  their  past 
illegal  operations  and  who  now  seek  from  the  Legislature  additional 


grants  of  power  to  enable  them  in  the  future  to  hicrcaso  and  multi- 
ply similar  stock  jobbing  operations.  A  law  to  prohibit  speculation 
in  the  stock  of  their  own  companies  by  officers  and  managers  of  cor- 
porations is  much  more  needed  to  insure  stability  of  financial  inter- 
ests and  honesty  towards  stockholders  and  the  public  than  is  one  to 
legalize  and  extend  the  field  of  speculations  of  this  character. 

SHAMELESS   EFFRONTERY. 

The  Gas  Trust  and  the  Whiskey  Trust  and  now  the  proposed 
Street  Railroad  Trust  by  their  nefarious  schemes  and  plots,  carried 
out  in  the  stock  market,  often  in  bold  and  brazen  defiance  of  the  law, 
are  what  have  given  and  will  give  to  Chicago  and  Illinois  securities 
whatever  of  bad  repute  they  may  have  at  home  or  abroad.  Do  you 
wish  to  aid  these  schemers  and  plotters?  You  are  now  asked  to  do 
so,  in  apparent  seriousness,  by  these  same  men  who  have  wrought 
so  much  confusion  and  destruction  in  the  past.  You  are 
asked  to  do  this  as  rebuke  to  anarchy  and  as  a  means  to  rehabilitate 
the  reputation  and  credit  of  Chicago  and  Illinois.  Words  fail  us 
with  which  fitly  to  characterize  such  monumental  efi'rontery. 

jSIr.  Y^erkes  modestl}^  assumes  to  be  the  only  person  who  under- 
stands the  wants  and  requirements  of  the  street  railroads.  He  says  : 
"  1  can  safely  say  there  has  not  been  a  single  man,  even  of  my  own 
people,  who  fully  understood  those  bills  and  also  the  relation  of  the 
street  railroads  to  them.''  He  even  goes  further  and  criticises  the 
the  different  public  officials,  presumably  including  members  of  the 
Legislature,  who  opposed  his  will. 

Says  Mr.  Y^erkes,  "  But  it  appears  that  the  street  railroad  busi- 
ness and  the  legislation  required  in  regard  to  it  are  almost  beyond 
])eople's  understanding!;  And  if  this  is  the  case  how  foolish  it  is  for 
people  in  authority  to  undertake  to  criticise  where  they  know  noth- 
ing about  the  subject  that  they  are  criticising.'' 

Considered  in  the  light  of  his  experience  with  all  the  phases 
aljove  presented  and  in  view  of  the  desires  and  exi)cctations  which 
he  ma}'  indulge  with  reference  to  his  proposed  street  railroad  trust 
along  similar  lines,  he  may  believe  that  he  alone  realizes  the  full 
possibilities  of  the  situation. 


12 

It  does  not  follow,  however,  that  it  is  desirable  or  even  safe  to 
pass  the  Yerkes  bill  at  his  dictation.  It  is  certainly  ranch  safer  for 
the  public  if  legislation  be  deferred  rather  than  hastily  to  swallow 
his  artful  concoctions,  which  seem  so  difficult  for  others  to  under- 
stand, in  the  hurry  and  confusion  incident  to  the  closing  days  of  a 
long  and  fatiguing  session. 

THE  ALLEN  AND   LITTLER   BILLS. 

There  seems  to  be  a  flock  or  whole  family  of  these  allied  street 
railroad  bills.  They  are  all  open  to  the  objection,  however,  that  no 
legislation  at  all  is  demanded  by  public  interests  at  this  time. 
Moreover,  these  bills  are  all  alike  in  providing  substantially 
nothing  for  the  people  and  they  all  propose,  in  differing  degrees,  to 
benefit  the  street  railroads  at  the  public  expense.  The  only  safe 
course  to  pursue  toward  them  all  is  to  defeat  them. 

If  either  of  the  bills  which  has  been  introduced  should  be  passed 
it  would  perpetuate  the  use  of  the  overhead  trolley  wires  which  are 
a  constant  and  increasing  menace  to  property  and  to  human  life. 
This  is  especially  true  in  thickly  settled  districts  from  which  they 
ought  to  be  excluded  and  in  which  they  should  be  superseded  by 
improved  methods. 

"GIVE    US    SOMETHING." 

We  resent  the  aspersions  cast  upon  the  fair  fame  of  Chicago  by 
these  men  who  have  fattened  upon  her  bounty  and  who  now  greedily 
strive  for  yet  more  munificent  donations  from  the  public.  "  Give 
us  something'-  they  say  "and  bring  back  prosperity. "  "Give  us 
something  and  rehabilitate  Chicago  and  Illinois."  "Give!"  cried 
the  horse  leech's  daughter,  and  "  Give  !"  and  "  Give  I"  They  de- 
sire to  help  Chicago  and  Illinois  by  receiving  something  as  a  gift 
which  shall  be  so  alluring  and  attractive  that  idle  capital  will  be 
eager  to  invest  in  it.  Who  would  benefit  by  this  ?  Would  it  be  the 
general  public  or  these  vociferous  gentlemen?  The  rehabilitation 
they  so  eagerly  seek  can  be  certainly  and  speedily  promoted  by 
them.  Let  them  abandon  purely  selfish  considerations  for  the  mo- 
ment.     Let  them  cease  their  attempts  to    corrupt  pul)lic    servants. 


13 

Lot  lliem  (leal  fnirly  and  openly  with  the  pul)lic'  and  Cliicaiio  will 
eniei'tje  from  the  crisis  which  they  have  produced  and  which  now  so 
seriously  threatens  her  i)rosperity. 

We  respectfully  submit  that  all  these  bills  should  be  rejected  by 
the  lef^islature  and  consigned  to  obloquy,  leaving  the  entire  subject 
to  be  dealt  with  individually  and  separately  by  the  different  mu- 
nicijialities. 

JOSIAH  L.    LOMHARD, 

C/iari'iiuDi  of  Coiiiiiiittce  of  (hie  Ibiudrcd. 
Edwin  Burritt  Smith, 
Newton  A.  Partridge, 

Special    (  nninuttee. 


